Event Risk - Chapter One

With the EUR/USD pair breaking support yesterday, shorts were in play. And with plenty of event risk ahead, caution is the word of the day. Today it’s the rate decisions by both the ECB and the BoE, and US initial jobless claims. Tomorrow brings the US non-farm payroll numbers. All eyes will be on Trichet and the ECB. While the consensus is for the rate to remain unchanged, recent talk concerning the strength of the Euro may have some traders jittery. Our indicators are currently neutral but we will take our lead from the ECB decision.